Digital wealth manager Moneyfarm has launched its absolute return strategy, which aims to provide positive performance and low volatility across all market conditions.
The multi-asset portfolio, which invests in stocks, bonds and currency strategies, has been launched in response to geopolitical uncertainty, changing interest rate expectations and heightened levels of market volatility.
It will be managed by Moneyfarm’s asset allocation team, headed up by chief investment officer Richard Flax.
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The firm recommends an investment time horizon of three to six years for the strategy and places the product between cash-based solutions and higher-risk growth portfolios within its range.
Chris Rudden, head of investment consultants UK at Moneyfarm, said: “Investors have become increasingly concerned about how to protect and grow their wealth in an environment where traditional stock and bond markets can experience periods of heightened volatility. At the same time, remaining in cash for too long can erode purchasing power and limit long-term growth opportunities.
“The absolute return strategy has been designed to help address this challenge by offering a flexible, diversified approach that seeks to generate returns across different market environments.”
He added that, as “diversification and resilience” becomes increasingly important to investors, absolute return strategies “can play an increasingly important role alongside traditional portfolio allocations”.
“This launch is another step in our mission to help clients build long-term wealth through a broad range of accessible, transparent and professionally managed investment solutions.”
